Consumer Behaviour towards Quick Bites of International

Origin in Comparison to Traditional Indian Cuisines

Name of Student : Adarsh Kumar

Registration Number : WMPT/J06/03

Date of Submission : 25th June 2010

Word count : 20,006 (Excluding Bibliography and Appendices)

 I

EXECUTIVE SUMMARY

It’s a known fact, fast food is basically food prepared and served quickly at a fast food
chain or maybe even a small stall or shop. The boundary between fast food and traditional
dishes I would say is the style of consumption. Fast food can also include salads and fruit
in addition to classic offerings such as hamburgers, hot dogs, sandwiches, chips, etc. The vital
characteristics of fast food of any origin could be Indian or even international are that they
require little time and are easier to consume while on the move as compared to traditional
Indian cuisines. Fast food is a multi billion industry continuing to grow at a rapid pace in the
coming years.

The sizable Indian market has prompted many MNC's to set up their outlets in India. Most
of the fast food chains that have penetrated in to the Indian market successfully; have
tailored their marketing strategies to cater to the needs and taste buds of the Indian
consumers. In the 1990's a spate of global fast food chains entered India hoping to capture a
part of Indian fast food segment. However, they found it difficult to establish themselves.
Gaining acceptance locally and blending into the Indian culture proved to be difficult.

In order to design effective product, promotion, pricing and distribution strategies, food
marketers need to understand the attitudes, perceptions, experiences and preferences of
their potential consumers. In this dissertation the researcher has made an attempt to
understand consumer preferences of the people of Chandigarh in respect of international fast
food offerings. The research gains importance from the point that Fast food industry
constitutes nearly 50% of all consumer food service units in the Indian market.
The study was carried out by collecting information from a primary source through
structured questionnaires put forward to consumers following the Simple Random Method
and secondary sources by studying various theoretical and issue related books, journals,
articles and company reports. The study was conducted in the city of Chandigarh, which
is a Union Territory in the Northern part of India. 115 consumers were surveyed to
understand their preferences with respect to international fast food offerings. The standard
questionnaire covered the awareness, attitude and behavior towards the consumption of
fast food in general and three selected product categories in particular.

Based on the data analysed from both primary and secondary sources, most of the consumers
falling between the age groups of 15 – 45 prefer fast food of international origin as compared to
local fast food joints due to hygiene and health factors; however, consumers in the age groups
of 45 – 60 were more rigid to traditional Indian cuisines due to taste and health factors.

There are three simple lessons for a brand that aims at Indian fast food market-

• It should have an ethical sensitivity for cultural and social values.

• A typical Indian consumer is Price sensitive because of his/her modest disposable

income.

• The marketers should gauge to what extent preferences converge between the
West and India with respect to product category.

Hence this dissertation focuses on a limited number of individual international fast food
products, which may be extended to a research programme covering a broad range of product
categories.
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Table Of Contents
Particulars Page no.
1. Table of contents II
2. List of Tables III
3. List of charts IV
4. List of figures V
BUSINESS REPORT  
5. Executive Summary I
   
6. Chapter I: Introduction  
   
1.1 Introduction 1-2
1.2 Statement of problem 3
1.3 Project scope and research objectives 4
1.4 Key research questions addressed in the study 4
1.5 Limitations of the study 5
1.6 Overview of the remaining study 5-6
ACADEMIC REPORT  
7. Chapter II: Literature Survey  
   
2.1 Introduction to literature survey 7
2.2 Food consumption behavior 7 - 10
2.3 Food traditions in India 13 - 14
2.4 Fast food in India 15
2.4.1 Introduction to fast food 15
2.4.2 Fast food industry overview 16
2.4.3 Start of fast food culture 17
2.5 Challenges involved with fast food industry in India 18
2.6 India- Emerging market for global players 20
2.6.1 Market size and Major players 21
2.7 Market for International origin fast foods in Chandigarh 24
2.7.1 Demand side 24
2.7.2 Supply side 29
2.8 Factors affecting the fast food industry 31
2.9 Problems of the fast food industry 35
2.10 Conclusion 36
Particulars Page No
 8. Chapter III: Research Methodology 36-42
3.1 Introduction to Research Methodology 38
3.2 Sources of Data 38
3.3 Data Gathering, Processing and Analysis 39
3.3.1 Secondary Data 39
3.3.2 Primary Data 39
3.4 Location of the Study: Chandigarh 41
9. Chapter IV: Data Analysis 43 - 80
4.0 Consumer Analysis 42
4.1 Trends in the Indian market 42
4.2 Consumer Demographics 43
4.2.1 Age wise break up of sample of consumers 43
4.2.2 Income wise break up of sample of consumers 44
4.2.3 Qualification wise break up of sample of consumers
45
4.3 Awareness, attitude and behavior of consumers towards International fast
food in General 46
4.3.1 Awareness 46
4.3.2 Likes and dislikes towards International fast food 48
4.3.3 Purchase behavior for International Fast foods 51
4.4 Attitude and Behavior towards hamburgers 53
4.4.1 Purchase frequency 53
4.4.2 Source of information, brand name, packaging, country of origin 55
4.4.3 Consumption and occasion 58
4.4.4 Alternatives and purchase intentions for hamburgers 59
4.5 Attitude and behavior towards pizzas 60
4.5.1 Purchase frequency of pizzas 60
4.5.2 Likes and dislikes about pizzas 61
4.5.3 Source of information, brand name, packaging, country of origin 63
4.5.4 Consumption and occasion for pizzas 66
4.5.5 Alternatives and purchase intentions for pizzas 68
4.6 Attitude and Behavior towards sandwiches 69
4.6.1 Purchase frequency of sandwiches 69
4.6.2 Likes and dislikes about sandwiches 72
4.6.3 Source of information, Brand Name and Packaging 73
4.6.4 Consumption and occasion for sandwiches 76
4.6.5 Alternatives and purchase intentions 78
Particulars Page no.
10. Chapter V: Conclusion, Key Findings and Recommendations 80 - 99
5.1 Factors influencing product choice 80
5.1.1 Who are the Consumers 80
 5.1.2 What to Buy 81
5.1.3 Time and Occasion 82
5.2 General attitudes towards International food products 82
5.3 Motivational factors behind buying behavior 83
5.4 Introduction to Conclusion 87
5.4.1 General 87
5.4.2 Who are the consumers of International fast food products 88
5.4.3 How consumers become acquainted with International fast foods 89
5.4.4 What are consumers looking for in International fast food products 90
5.5 Introduction to Recommendations 95
5.6 Implications for future research 98
11. Bibliography and References 99 - 103
12. Appendices 104 - 125
Appendix-1: Questionnaire for consumers 104 - 120
Appendix- II: Model of consumer decision making process 121
Appendix- III: International trends in the Fast food industry 122
Appendix- IV: Outlets in Chandigarh where consumers were
interviewed 123
Appendix- V: Percentage of vegetarians as per the states in India 124

III

List of Tables
Particulars Page no.
1. Profile of Restaurant Chains in India 25
2. Budget and Prosperity of the Union territories in India 27
3. Consumer market of the Union territories for the year 2008-09. 28
4. Age wise breakup of the sample of consumers interviewed 43
5. Income wise breakup of the sample of consumers interviewed 44
6. Qualification of consumers interviewed 45
7. Awareness of International Fast food products among consumers 46
8. Percentage of Vegetarians according to the States in India 125

IV

List of Charts
Particulars Page No
1. Percentage of consumers as per age group 43
2. Percentage of respondents as per household income 44
3. Percentage of consumers as per the qualification 45
4. Awareness of International Fast foods 46
6. Likes towards International fast foods 48
7. Dislikes towards International fast foods 49
8. Limiting factors for buying International fast foods 50
9. International fast food buying frequency 51
12. Means of Consumption for International fast foods 52
13. Purchase frequency of hamburgers 53
14. Sources of information for hamburgers 55
15. Importance of brand name for hamburgers 56
16. Importance of packaging for hamburgers 57
17. Means of consumption of hamburgers 58
18. Alternatives for hamburgers 59
19. Purchase frequency of pizzas 60
20. Important reasons for not buying pizzas 62
21. Sources of information for pizzas 63
22. Importance of brand name for pizzas 64
23. Importance of packaging for pizzas 65
24. Means of consumption for pizzas 66
25. Occasion for eating pizzas 67
26. Alternatives for pizzas 68
27. Purchase intention of pizzas for next year 70
28. Purchase frequency of sandwiches 69
29. Important reasons for buying sandwiches 72
30. Sources of information for sandwiches 73
31. Importance of brand name for sandwiches 74
32. Importance of country of origin for sandwiches 75
33. Means of consumption for sandwiches 76
34. Occasion for eating sandwiches 77
35. Alternatives for sandwiches 78

List of Figures
Particulars Page No.
1. Model of Consumer buying process 10
2. Buyer Behavior 11
3. Marketing Stimuli 11
4. Other Stimuli 11
5. Map showing location of Chandigarh in India 41
6. A Model of Consumer Decision making Process 121